London, UK – Channel has closed a financing round for a major player in the Freelance economy or Gig economy. Our lending supports a $50mio credit facility to a key player that provides working capital to the Gig economy across various states and regions.
Freelancers are a growing an important part of the global economy, which has only accelerated. Employment in this sector has grown above 30% of total employment since the pandemic contributing $1.2 trillion to the economy.1 The largest growing sectors of employment in this gig economy include technology (including software development and cyber), education, transport, finance, digital marketing, health care/therapy, logistics and tourism. Freelancers enjoy the freedom to pursue their own lifestyle choices, sometimes work locations and hours worked. They also can “dial-up” or “dial-down” their hours as they re-balance work and lifestyle priorities.
Channel seeks to support the Gig economy in a responsible fashion. Recent research has shown that while Freelance workers enjoy certain aspects of this working structure, there are some considerations including inequal access to capital by financially constrained individuals to access Freelancer opportunities.2
Our capital, a senior facility which enjoys considerable debtor granularity, security and significant lending track record, will be used to support the Freelance economy across many economic sectors.
Tony Smedley, Director of Sales, said “We are deploying funds from our recent launch of the Corniche strategy focussing on innovation firms including this investment into the Gig economy, supporting responsible funding of this key client sector.”.
“This investment into granular pools of credits, excellent performance track record and strong technology and governance features is what we are seeking for inclusion into funds for our limited partners/investors”, said Walt Gontarek, Channel CEO and Chairman of its Investment Committee.
1. Forbes (2020). 2 Buchak (2023), Financing the Gig Economy, The Journal of Finance
At Channel, we provide high-quality, privately originated asset-backed investment products by originating, structuring, and managing investments for leading institutional investors. We specialise in opportunities from issuers in specialty finance and the innovation economy.
For borrowers, we are a trusted partner in growth. Our expertise in structuring tailored financing solutions ensures you get the capital you need to scale, with a streamlined process and terms that work for your business. We are committed to delivering flexible, efficient, and growth-focused funding that empowers your success.